Yugo underfolder issue? in Michigan

I recently had a Yugo underfolder, that was on back order, shipped to an FFL to do the transfer to me.
I was informed of two issues by the FFL. 1) When the stock is folded the FFL claims that it falls under the definition of a pistol and therfore needs to be registered as such with the Sheriff Dept.
2) I also learned that it will be considered a short barreled rifle because it is twentyfive and three quarters inches long, stock folded, instead of the required twentysix.
This was a parts kit assembled on a DCI receiver, I believe, put together by Century Arms ? A guess.
Understand I'm not pointing fingers. I could live with the pistol registration but the lenght issue kills the deal if it can't be resolved.
I've seen these at gun shows in Michigan but never thought to ask any questions.
Is it as simple as putting on a longer muzzlebrake or flash hider and then does it need to be permantly attached.
Thanks for any feed back.

Rattletrap,
If the length of the barrel is 16' or greater it will be a rifle. Barrel length determines rife/pistol catagory, unless it's an SBR. I found this question posted elsewhere and I believe it is correct:I understand that according to the BATFE a rifle's overall length ?Efor a rifle with a folding stock ?Eis to be measured with the stock extended. I have seen a number of examples that would tend to support this but I cannot find anything in the United States Code, the Federal Register, or any published letters from the BATF/E to support this.

I also see on this site where James Bardwell has been quoted as stating this to be a fact. I understand that 27 CFR 179.11 states that the "extreme ends"of the weapon are to be measured but I am looking for an official recognition that this means "with the stock extended".
If it were to be registered as a pistol you would have to remove the buttstock and make it so one could not be attached at anytime in the future.
I think you are getting the run around from your dealer Call Century or better yet the BATF and get a letter from them stating this is correct.

Michigan law is strange - I would take the suggestion to contact century arms or the batf to get a letter stating whether it is a rifle or a pistol.

If it was made as a rifle it is a rifle.

"To show you how radical I am, I want carjackers dead. I want rapists dead. I want burglars dead. I want child molesters dead. I want the bad guys dead. No court case. No parole. No early release. I want 'em dead. Get a gun and when they attack you, shoot 'em."
Ted Nugent - speaking at the NRA convention April 17, 2005

I thought the 26 in thing was a part of the AWB. since its sunset it would be a non issue unless there are additional local regs. it may or not be a case of an un educated dealer or one that only wants certain kinds of fire arms run through there

Consider this, Amateurs built the Ark, Professionals built the Titanic